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Big Name Stocks Due to Report Quarterly Numbers This Week

Tuesday, February 18, 2020 03:43 PM | Michael Fowlkes

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Big Name Stocks Due to Report Quarterly Numbers This Week

The current earnings season has been positive, and despite shortened holiday week, there are plenty of big-name companies set to report their most recent quarterly numbers this week.

The market continues to trade near its all-time high but coronavirus fears are applying pressure to stocks and jeopardize the bull market traders have enjoyed in recent years. Stocks have remained resilient but faced pressure this week as tech titan Apple (AAPL) warned that its current quarterly numbers would be weaker than expected as suppliers in China would likely fall short of demand and consumer demand would be weaker than expected as China continues to grapple with coronavirus containment.

Overall economic conditions remain favorable, but until the coronavirus virus ease, there will remain uncertainty in the market and volatility will remain. The uncertainties make the current earnings season all the more important and each report has the potential to cause a ripple effect across the overall market.

Here are three important reports to watch this week.

Avis Budget Group (CAR)

Auto rental company Avis Budget Group (CAR) recently rose to a new 52-week high ahead of the company’s upcoming earnings report. The company will report its fourth-quarter numbers on Wednesday. The company is expected to report its quarterly numbers on Wednesday with the market expecting to see earnings of $0.48 per share, down from $0.53 during the same period last year. Last quarter the company delivered disappointing numbers on both the top and bottom lines. The stock took a hit following the disappointing numbers but quickly recovered and is up sharply over the last three months. Strong economic conditions have led to impressive annual earnings growth of 21.7% over the last five years, and while profit growth is forecast to slow in the next few years analyst still see earnings growth of 11.1% per annum for the next five years. The solid forecast earnings growth, in combination with CAR trading at just 10.3 times future earnings suggests there is additional upside to the stock at this point.

Genuine Parts Co. (GPC)

Auto parts retailer Genuine Auto Parts (GPC) has traded lower over the last month ahead of the company's upcoming fourth-quarter report. Genuine Parts is expected to report earnings of $1.31 per share, down from $1.35 during the same period last year. Last quarter the company posted mixed numbers with a positive earnings surprise and a small sales miss, and this quarter the street expects another earnings miss with a whisper number of $1.29. The stock looks like an attractive value with shares trading at just 16 times earnings. Earnings are up 5.8% per annum over the last five years, and looking ahead analysts expect profits to rise at an annual rate of 4.6% over the next five years. The street expects a small earnings miss with a $1.29 whisper number. With the small miss already priced into the stock, and the stock trading at 16 times earnings there is a lot of upside potential as long as the company is able to deliver in-line or better than expected profits. GPC trades at $96.90 with an average price target of $107.33.

Deere & Co. (DE)

Heavy machinery maker Deere & Co. (DE) is scheduled to release its fiscal first-quarter numbers on Friday. The company will release its numbers before the market opens with the consensus calling for earnings of $1.30 per share. DE stock has traded sideways since early October. The company reported better than expected top and bottom line numbers last quarter in late November, but the street expects a small earnings miss this quarter with a whisper number of $1.25. The stock enjoyed strength in the second half of 2019 as trade negotiations between the U.S. and China improved and the outlook for American farmers improved, and there is still good value in the stock which currently trades at just 15 times future earnings. The trade war hit farmers hard as China imposed tariffs on farm goods in retaliation to U.S. tariffs, but negotiations have improved, and China has eased some tariffs on U.S. farmers. Profits are forecast to rise at an annual rate of 14.6% over the next five years after rising at an annual rate of 11.8% over the next five years. Analysts see upside in the stock with an average price target of $176.00.

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